MIRA
INFORM REPORT
|
Report Date : |
05.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
FAIVELEY TRANSPORT RAIL TECHNOLOGIES INDIA LIMITED (w.e.f. 15.09.2011) |
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Formerly Known
As : |
FAIVELEY TRANSPORT INDIA LIMITED TVS ANSALDO TRANSPORTI PRIVATE LIMITED |
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Registered
Office : |
PB No. 39, Harita, Hosur – 635109, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
18.04.1991 |
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Com. Reg. No.: |
18-008636 |
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Capital
Investment / Paid-up Capital : |
Rs. 40.000 Millions |
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CIN No.: [Company Identification
No.] |
U29199TZ1991PLC008636 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEF03294E |
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PAN No.: [Permanent Account No.] |
AAGCS8525B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Disk Brake System, Disk Brake Pad, Brake Shoes,
Flexible Roll, Brake Disk and Rear Brake Drum. |
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No. of Employees
: |
250 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6148000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track record. The rating reflects healthy financial profile marked by strong
liquidity position and decent profitability of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Murthy |
|
Designation : |
Account Department |
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Contact No.: |
91-4344-276761 |
|
Date : |
03.09.2014 |
LOCATIONS
|
Registered Office / Factory : |
PB No. 39, Harita, Hosur – 635109, Tamilnadu, India |
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Tel. No. : |
91-4344-276761 |
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Fax No. : |
91-4344-276035 |
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E-Mail : |
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Website : |
DIRECTORS
As on 30.09.2013
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Name : |
Mr. Srinivasan Seshadri |
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Designation : |
Managing Director |
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Address : |
Anvisesh No.238, Amar Jyothi Layout, Off Intermediate Ring Road, Domlur, Bangalore – 560071, Karnataka, India |
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Date of Birth/Age : |
30.05.1964 |
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Date of Appointment : |
10.04.2012 |
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PAN No.: |
Graduate |
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DIN No. : |
01431524 |
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Other Directorship
:
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Name : |
Mr. Gurdev Singh Soin |
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Designation : |
Director |
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Address : |
B-1B, Gangotri Enclave, Alaknanda, New Delhi, India |
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Date of Birth/Age : |
07.04.1956 |
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Date of Appointment : |
29.11.1999 |
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DIN No. : |
00989118 |
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Other Directorship
:
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Name : |
Thierry Marc Barel |
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Designation : |
Director |
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Address : |
Rovagny, Talloires - 74290, France |
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Date of Birth/Age : |
11.02.1961 |
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Date of Appointment : |
30.09.2010 |
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PAN No. : |
Graduate |
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DIN No. : |
02940702 |
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Other Directorship
:
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Name : |
Charlesworth Simon Richard |
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Designation : |
Director |
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Address : |
Domaine De La Fontaine, 23, Rue Colette, St Nom La Breteche 78860, France |
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Date of Birth/Age : |
05.08.1964 |
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Date of Appointment : |
30.09.2010 |
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DIN No. : |
02940747 |
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Other Directorship
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Name : |
Lilian Mathieu Leroux |
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Designation : |
Director |
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Address : |
110, Rue Du Connetable, Chantilly, France, 60500 |
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Date of Birth/Age : |
02.11.1971 |
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Date of Appointment : |
30.09.2011 |
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DIN No. : |
03471396 |
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Other Directorship
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Name : |
Guillaume Didier Marie Bouhours |
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Designation : |
Director |
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Address : |
12, Boulevard De Magenta Paris - 75010, France |
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Date of Birth/Age : |
03.07.1976 |
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Date of Appointment : |
30.09.2011 |
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DIN No. : |
03471372 |
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Other Directorship
:
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
No. of Shares |
|
Faiveley Transport Malmo AB, Sweden |
3999994 |
|
Seshadri Srinivasan |
1 |
|
M.S. Kakade |
1 |
|
A.S.N. Murthy |
1 |
|
CH. Sivakama Raju |
1 |
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Sunkuru Ranjan Kumar Patra |
1 |
|
Deepak Chandrasekhar Deoghare |
1 |
|
Total |
4000000 |
As on 30.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Disk Brake System, Disk Brake Pad, Brake
Shoes, Flexible Roll, Brake Disk and Rear Brake Drum. |
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Product/ Services: |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
State Bank of Mysore, Harita Branch, Hosur, Hosur - 635109, Tamilnadu, India |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Address : |
47/6, 14th Floor, Mittal Towers, M.G. Road, Bangalore – 560001, Karnataka, India |
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Income-tax
PAN of auditor or auditor's firm : |
AABFL5878L |
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Ultimate Holding
Company: |
Faiveley Transport SA, FRANCE |
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Fellow Subsidiary
Company: |
· Faiiveley Transport Birkenhead Limited Faiveley Transport Amiens Faiveley Transport Australia Limited Faiveley Transport Italia S.P.A Faiveley TransportLekov AS Faiveley Transport Malmo AB Faiveley Transport Nordic AB Faiveley Transport Railway Trading (Shanghai) Company
Limited Faiveley Transport Witten Gmbh Faiveley Transport Tours Faiveley transport Korea Limited Faiveley transport Far East Graham White Manufacturing Company |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 40.000 Millions |
|
2,000,000 |
Preference Shares |
Rs.10/- each |
Rs. 20.000 Millions |
|
|
|
|
|
|
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Total |
|
Rs. 60.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 40.000 Millions |
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|
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
40.000 |
40.000 |
40.000 |
|
(b) Reserves & Surplus |
1497.090 |
1312.440 |
1693.590 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
1537.090 |
1352.440 |
1733.590 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
21.630 |
38.090 |
17.310 |
|
Total Non-current Liabilities (3) |
21.630 |
38.090 |
17.310 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
573.930 |
552.650 |
501.020 |
|
(c) Other current
liabilities |
125.800 |
133.590 |
133.540 |
|
(d) Short-term provisions |
89.370 |
92.280 |
100.660 |
|
Total Current Liabilities (4) |
789.100 |
778.520 |
735.220 |
|
|
|
|
|
|
TOTAL |
2347.820 |
2169.050 |
2486.120 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
214.860 |
192.250 |
203.750 |
|
(ii) Intangible Assets |
51.830 |
36.970 |
36.550 |
|
(iii) Capital
work-in-progress |
6.700 |
5.060 |
4.660 |
|
(iv)
Intangible assets under development |
9.570 |
2.400 |
9.440 |
|
(b) Non-current Investments |
10.000 |
10.000 |
10.000 |
|
(c) Deferred tax assets (net) |
11.980 |
18.240 |
12.050 |
|
(d) Long-term Loan and Advances |
34.830 |
40.160 |
12.700 |
|
(e) Other Non-current assets |
22.880 |
25.990 |
35.200 |
|
Total Non-Current Assets |
362.650 |
331.070 |
324.350 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
4.610 |
8.000 |
7.050 |
|
(b) Inventories |
347.010 |
385.690 |
468.640 |
|
(c) Trade receivables |
1119.820 |
1044.240 |
1078.170 |
|
(d) Cash and cash
equivalents |
462.110 |
366.920 |
581.080 |
|
(e) Short-term loans and
advances |
46.690 |
32.230 |
23.680 |
|
(f) Other current assets |
4.930 |
0.900 |
3.150 |
|
Total Current Assets |
1985.170 |
1837.980 |
2161.770 |
|
|
|
|
|
|
TOTAL |
2347.820 |
2169.050 |
2486.120 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2921.430 |
2792.990 |
3140.730 |
|
|
|
Other Income |
54.380 |
53.940 |
43.830 |
|
|
|
TOTAL (A) |
2975.810 |
2846.930 |
3184.560 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1310.000 |
1197.670 |
1728.280 |
|
|
|
Purchases of Stock-in-Trade |
289.520 |
330.000 |
154.790 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(13.070) |
5.070 |
12.170 |
|
|
|
Employees benefits expense |
335.740 |
282.720 |
278.170 |
|
|
|
Other expenses |
465.510 |
413.680 |
448.140 |
|
|
|
TOTAL (B) |
2387.700 |
2229.140 |
2621.550 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
588.110 |
617.790 |
563.010 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.110 |
0.840 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
588.000 |
616.950 |
563.010 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
56.910 |
60.910 |
62.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
531.090 |
556.040 |
500.030 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
113.990 |
84.790 |
134.540 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
417.100 |
471.250 |
365.490 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
|
|
122.691 |
|
|
|
Income from Engineering Services |
|
|
24.350 |
|
|
|
Service Income |
|
|
74.185 |
|
|
|
Others |
|
|
1.099 |
|
|
TOTAL EARNINGS |
166.270 |
145.898 |
222.325 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
359.200 |
|
|
|
|
|
components and spare parts |
218.940 |
205.870 |
|
|
|
|
Capital goods |
2.750 |
0.380 |
|
|
|
TOTAL IMPORTS |
580.890 |
545.840 |
810.273 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
104.27 |
117.81 |
91.37 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
14.02 |
16.55 |
11.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.18 |
19.91 |
15.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
23.00 |
26.06 |
20.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.35 |
0.41 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.52 |
2.36 |
2.94 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
40.000 |
40.000 |
40.000 |
|
Reserves & Surplus |
1693.590 |
1312.440 |
1497.090 |
|
Net
worth |
1733.590 |
1352.440 |
1537.090 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3140.730 |
2792.990 |
2921.430 |
|
|
|
(11.072) |
4.599 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3140.730 |
2792.990 |
2921.430 |
|
Profit |
365.490 |
471.250 |
417.100 |
|
|
11.64% |
16.87% |
14.28% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10292072 |
17/06/2011 |
27,304,712.00 |
MR. SUDHIR SHARMA |
SINGLE WINDOW CLEARANCE AGENCY, DEPARTMENT OF IND |
B14949051 |
INDIAN ECONOMIC
SCENARIO:
The Indian economy, Asias third largest, has slowed sharply from the scorching growth notched a few years ago. A string of factors, including a slowing GDP growth rate, fluctuations in exchange rate, rising oil and coal prices, power shortages, weak growth in traditionally strong sectors, debt contagion, rise in interest rates, high inflation rate, subdued investments, slowing global economy, delay in implementation of projects and policy logjam has created challenging situation. The market witnessed unprecedented rupee depreciation triggered primarily by the news of possible tapering in quantitative easing programme of the US.
The economy grew at its slowest pace in a decade in 2012-13, recording a growth of 5% compared to 6.2% in the previous fiscal year posing another fresh challenge for the Government to revive growth and boost sentiment. The economy grew 4.8% in the anuary-March period, the fourth quarter of the 2012-13 fiscal year, marginally above the upwardly revised 4.7% expansion in the previous quarter, providing some hope of a tentative turnaround. But the overall economic scenario still remains challenging. Indias economy is poised for a gradual recovery in 2013, driven by large investment projects and foreign direct investment, after slumping to its slowest pace of growth in a decade in the previous year, the Organisation for Economic Co-operation and Development said in its economic outlook Among major emerging market economies, a moderate cyclical upturn is getting underway in China, while a more hesitant pick-up in growth is seen to take place in India, the Paris-based organization said
The India Meteorological Department has projected normal rainfall this year, boosting the chances of robust agricultural output, which would have a cooling effect on inflation. The Government of India and the RBI have taken various proactive measures for containing volatility in the currency market, reducing inflationary pressure and curbing unwarranted speculation. Other policy initiatives by the Government such as liberalization of FDI in various sectors, postponement of the implementation of GAAR, replacing the company law with a new legislation etc point to the will of the government to continue on the path of reforms that are expected to contribute to the revival of the economy.
AN OVERVIEW OF THE
BUSINESS SCENARIO:
RAILWAY BUSINESS:
Indian Railways is a vital organisation, playing an unparalleled role in integrating the nation. From Baramulla in the north to Kanyakumari in the south, Dwarka in the West to Ledo in the East, trains of the Indian Rail always are on the move, carrying people and material, creating opportunities and fostering development. Indian Railways, through its Vision 2020 document aims at massive addition to its route network, segregation of passenger and freight network and improving the safety and comfort of its millions of passengers.
The directors take this opportunity to place before you an overview of the scenario and growth of rail and metro sectors in the country withwhich the growth of the company is linked.
PASSENGER BUSINESS:
NEW COACH FACTORIES:
Railways constitute an important mode of passenger transportation for long distance and suburban commuter traffic. In line with the ever increasing passenger traffic via rail net work, there is an increased need of passenger coaches. Continuing the initiatives launched in the past to set up new coach factories to augment the production of coaches to cater to the ever increasing commuter demand, it is proposed to set up an additional rail coach factory in Sonepat, Haryana.
The rail coach factory in Haryana will be set up with an investment of about Rs 22000.000 Millions. It would start with 400 coaches annually and roll out 1,000 coaches when fully commissioned.
The Government has also announced setting up another Rs. 10000.000 Millions state-of-the-art coach factory in Bhilwara in Rajasthan. Railways has joined hands with state-owned BHEL for setting up this modern Mainline Electric Multiple Unit (MEMU) coach factory in Rajasthan to cater to the growing demand for faster and comfortable inter-city travel. MEMU trains, which have a higher carrying capacity, are very popular on non-suburban sections.
As the members are aware, the company is the original equipment supplier to coach factories for several years now. These new projects will generate ample business opportunities for the company in the coming years.
MODERNISATION OF
ROLLING STOCK:
Up gradation of coaches including EMU coaches and locomotives will be one of the key areas of modernization during the next 5 years for improving safety and convenience and comfort of passengers. The investment in rolling stock in the next 5 years is estimated to be Rs. 1707510.000 Millions
In the backdrop of train accidents that have occurred over the last few years, the Kapurtala based Rail Coach Factory has developed crash worthy coaches specially designed to absorb the impact of the crash. The new coaches are also being fitted with couplers of a new design which will lessen the discomfort whenever a train accelerates or decelerates and absorb the impact if trains collide.
The Indian Railways plans to replace its entire fleet of about 59000 coaches with the lightweight LHB-design stainless steel coaches.
The Parliamentary Standing Committee on Railways has recommended that in view the burden on the existing infrastructure of railways, the introduction of double Decker trains will help to increase two-fold existing passenger capacity of the Indian Railways. Double Decker have already been launched in some sectors and many more are underway. The company is already supplying disc brake systems for these trains and the directors expect considerable increase in the volume of business in this segment considering the proposals being initiated by Indian Railways in this regard.
HIGH SPEED TRAINS:
India has one of the largest rail networks in the world but does not have any high-speed rail lines capable of supporting speeds of 200 km/h or more. High-speed corridors have been proposed from time to time but not implemented.
The Indian governments Railways Vision 2020 document, spelled out the railway ministrys plan to introduce high-speed rail travel in India. That program envisioned a rail network with at least four projects featuring locomotives traveling at up to 350 kilometers per hour By 2020, the government hopes to add 25,000 kilometers of new tracks to accommodate the new super fast trains as well as conventional rail vehicles The Railways are planning for corridors connecting commercial, tourist and pilgrimage hubs. Twelve corridors have already been identified for technical studies on setting up of high-speed rail corridors.
The company is aggressively working on upgrading the technology to be able to cater to the requirements of Railways emerging out of the above initiatives.
FREIGHT BUSINESS:
Freight traffic has been the mainstay of internal resource generation for the Indian Railways. It is expected that this year the Indian Railways is set to achieve the milestone of entering the one Billion Tonne Select Club, joining Chinese, Russian and US Railways with freight loading estimated to be 1047 MT, about 38 MT over 2011-12.
Railways are set to become a major heavy-haul carrier due to running of long-haul trains which run freight trains of more than 10,000 tonnes load. As a part of this initiative, 49 long loops, that could hold 1.5 km long trains, have been sanctioned this year.
The food security act adds a stimulus to coach production as considerable number of wagons are required to facilitate movement of food grain across the country. Railways are in the process of floating bids for about 1000 wagons to facilitate transportation of food grains.
The two mega projects that are expected to take off soon are Madhepura 12000 hp electric loco project and Marhoura Diesel loco project. The company is well poised to supply brake systems for these two mega projects in a big way.
DEDICATED FREIGHT
CORRIDORS (DFC):
With India joining the select group of billion plus club in freight movement, the focus has once again shifted on the prestigious Dedicated Freight Corridor. The project will enhance the freight carrying capacity of railways by manifold. The DFC will also decongest the existing lines which will in turn help in increasing the speed of passenger trains.
In order to maintain the focus and deadlines in building the dedicated freight corridor,
a separate Special Purpose Vehicle called the Dedicated Freight Corridor Corporation of India (DFCCIL) is a set up under the administrative control of Ministry of Railways to undertake planning & development, mobilization of financial resources and construction, maintenance and operation of the Dedicated Freight Corridors.
The company also sees a big potential to supply of brakes for locos coming from Japan for the dedicated freight corridor expected to be finalized in the next two years.
These initiatives can mean huge volumes of business in the freight segment in the coming years and may require setting up of additional production facilities as well.
METRO BUSINESS:
The high speed of urbanisation poses unprecedented challenges in several ways, one of the most significant being urban transportation. At present, about 28 per cent people live in towns and cities which is expected to go up to 40 per cent by 2031, amounting to 60 crore people.
Metro is seen as the main only way out to save the transport woes of this country. Appreciating this fact, India has been investing considerably in building the modernized metro transport system to create an efficient, safe, reliable and affordable world class mass rapid transport infrastructure in the country. Metro rail projects were being implemented in seven cities covering a total network of length 476 km at a cost of over Rs. 1.15 lakh crore.
As a further commitment to augment the metro rail infrastructure in the country, the government has decided to support preparation of Detailed Project Reports for Metro rail in all 19 cities with a population of over two million.
The company has successfully executed the Brakes and HVAC contracts for Delhi Metro. The company is currently executing an order for the supply of brake equipment to Chennai Metro. The company is also in the process of finalizing orders for supply of parts and provision of services for the Platform Screen Doors Project of Chennai Metro.
METRO BUSINESS
OVERSEAS:
The directors are happy to inform that the company has secured a prestigious order from Hyundai Rotem valued at Rs. 348.000 Millions for supply of couplers for Hong Kong Metro scheduled to start from April 2014.
The company has also secured another prestigious order for couplers for Dosto (Switzerland) rail project. Further opportunities include supply of light rail couplers for several European cities, C3 compact calipers and other similar products for ICX Germany.
With considerable experience to its credit in catering to the equipment and service requirements of metro sector, the directors are confident that the company look for big opportunities in metro business in the years to come.
DEDICATED ENGINEERING
CENTER:
As the members are aware, the company is currently supporting the Centers of Competence (CoCs) in their engineering activities. The company is considering a proposal to establish a full fledged engineering center in India to cater to the requirements of their European CoCs. This would mean considerable increase in forex earnings for the company.
NEW PRODUCTS:
During the year the company has developed various new products details of which are provided in Form B attached to this report.
OPERATIONS:
The company has recorded a growth in sales from Rs. 2793.000 Millions in the year 2011-12, net of excise duty, to Rs. 2921.400 Millions, registering a growth of 4.6%. However, the PBT has dropped from Rs. 556.000 Millions to Rs. 531.000 Millions mainly due to higher warranty costs attributable to metro projects, significant increase in travel costs and writing off bad debts to the tune of Rs. 25.500 Millions. The drop in profits is a temporary phenomenon due to the above reasons and the company will bounce back soon both in terms of sales and profits. Other income rose from Rs. 53.900 Millions to Rs. 54.400 Millions, coming from higher non-operating income.
FIXED ASSETS
Tangible Assets
Land
Buildings
Plant
and Equipment
Furniture
and Fixtures
Vehicles
Motor
Vehicles
Office
Equipment
Other
Equipments
Livestock
Intangible Assets
Computer
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.45 |
|
|
1 |
Rs.99.46 |
|
Euro |
1 |
Rs.79.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.